Nowadays, many of the online transactions of digital products are carried out by cryptocurrencies. Several businesses in the market have made their customized cryptocurrencies called tokens to benefit from this emerging trend. These currencies are made on a decentralized blockchain system. Amongst these modes of digital payments, non-fungible tokens have acquired immense popularity.
A non-fungible token, also called an NFT, is a form of digital assets that are non-identical and unique. Therefore, they can also be a digital representation of a real-life asset. However, unlike bitcoin or other cryptocurrencies, they cannot be traded; for instance, you cannot exchange one NFT for another as both carry distinct values. Non-fungible tokens are built on a blockchain that securely stores the transaction data of the user’s purchases. This provides security to the user from malicious activities like deletion, alteration, or replicating of data.
A Brief intro of NFT Marketplace?
The market or platform where the sale and purchase of non-fungible tokens take place is the NFT Marketplace. It is a decentralized and unique platform. This marketplace is built on a blockchain network. All the data related to the transaction are securely saved in this blockchain, eliminating any chances of fraud or malice. There are different types of marketplaces, such as exclusive type and open-type of marketplace.
A specific type of NFTs are traded in exclusive type marketplaces, let’s say digital art collectibles. Some famous examples of exclusive type marketplaces are Nifty Gateways and SuperRare. The open type marketplaces trade all types of NFTs, for example, audio clips, video clips, trading cards, etc. OpenSea and Rarible are some famous open-type marketplaces.
Non-fungible tokens have gained popularity in e-commerce, so many NFT development firms have started creating their own NFT marketplaces. One notable example is the introduction of NFTs in the gaming sector. Blockchain-based NFT games are earning millions in profits by doing all the in-game transactions in the form of NFTs, where the players get to acquire these NFTs by accomplishing levels and finishing tasks. Some of the popular NFT games are Crypto Kitties, Decentraland, and Polkacity.
How Do NFT marketplaces work?
Anyone can create an NFT and upload them on an NFT marketplace where the user’s NFT is displayed. The user then chooses the means of payment, i.e., fixing a price or starting an open auction. The fixed price assets are all set for sale where potential buyers see the displayed NFTs and purchase them at the given rate. The owner is paid the final price closed when an auction takes place.